Among all alternative dispute resolution methods arbitration has most similarities with judicial litigation. Compared to court proceedings arbitrations usually take less time.
By concluding an arbitration agreement the parties agree to settle their dispute before an arbitration panel and thus exclude the jurisdiction of the courts. Arbitration and litigation are mutually exclusive.
In arbitration proceedings the parties may agree to a settlement. If this is not possible, the arbitrators make their judgment. Thereafter only limited possibilities remain for challenging an arbitration award with a lawsuit for annulment before the courts.
The arbitration agreement is generally part of the general agreement between the parties and/or part of the general terms and conditions.
The basic rules of arbitration are governed by the Arbitration Act (ZArbit, Ur. l. RS, št. 45/2008, from 09. 05. 2008).
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